Why eSIMs are the perfect fit for loyalty programs

Building a successful loyalty program is a challenge. How do you keep members engaged? What can you offer that feels genuinely valuable? The answer lies in providing real, tangible benefits that fit your members' lifestyles.

This is where an eSIM becomes more than just a perk — it's a relevant solution and value-add for every traveler.

Integrating eSIMs into your program offers a flexible, relevant, and profitable way to reward your most loyal members. This innovative solution can set your brand apart and easily integrate into your customers' journey.

The eSIM advantage: More than just connectivity

An eSIM, or "embedded SIM," is a digital SIM card built directly into a mobile device. With an eSIM, your loyalty members no longer need to worry about physical SIM cards, expensive roaming fees, or the hassle of staying connected abroad.

The digital nature of an eSIM means you can easily integrate it within any business model or company journey and adapt it to any company branding. You're not just offering a reward but becoming a trusted part of your customer's travel experience.

Example:

A loyalty member traveling to Europe logs into their airline app and sees their membership plan offers them an eSIM data plan. With a few taps, they activate the eSIM on their phone. When they land, their phone instantly connects to a local network. There is no searching for a local SIM card and no surprise bills — just seamless connectivity from the moment they arrive.

Why now? The global shift toward eSIMs

The global eSIM market is projected to reach over $6 billion by 2032, with an annual CAGR of 20%. Introducing eSIMs now creates a prime opportunity for your brand to stand out, educate members, and lead the charge in this new digital era.

Industries already elevating loyalty with eSIMs

Below are some industries that have seen the first-hand impact eSIMs have on their loyalty memberships:

• Airlines: Our airline partners include eSIMs as a perk in their frequent flyer programs or as an add-on purchase that earns them flying miles. This strengthens their brand as a partner throughout the entire travel journey.
• Banks and fintech: These institutions offer eSIMs in travel-focused bundles or provide exclusive discounts on eSIM plans to certain tier members. This gives real-time value to members when they need it most.
• Hotels: Resorts and hotel chains can offer discounted eSIMs to VIP guests, providing a premium, connected experience from check-in to check-out.
• Health insurance: Companies can offer eSIMs to members traveling abroad, ensuring they have reliable access to their health resources and emergency contacts, offering peace of mind.
• Tour and travel operators: As part of a tour package, operators can bundle an eSIM to help travelers stay connected, share their experiences, and access essential travel information.

And many more.

Airalo Partners works with 5,000+ partners worldwide to bring seamless global connectivity to millions of travelers.

How eSIMs boost and benefit loyalty programs

eSIMs are still relatively new. Many travelers understand the problem of connecting abroad, but don't know that a simple solution exists. When you solve that pain point, you give them connectivity abroad and position your company as a leader in perks and technology.

Integrating eSIMs into your loyalty program benefits both your business and your members. By offering a digital-first solution, you meet the demands of consumers who expect everything to be at their fingertips.

1. Elevate your loyalty program value proposition

Go beyond traditional points and discounts. Give your members a practical, immediate reward that solves a real problem when they travel. Offering eSIMs as a reward sets you apart from competitors. It shows your members that you understand their needs and are committed to providing them with innovative, valuable benefits.

eSIMs can also be a natural addition to any travel-related bundle or service. For example, banks can include them as a perk plan for certain tiered members when they travel, and airlines can offer them to their frequent flyers as a perk or a way to earn miles.

2. Nurture engagement and retention with relevant products 

Make your loyalty program "sticky." When members use your app or portal to get their connectivity, they are more likely to stay engaged with your brand. This extends your value beyond the usual boundaries. For example, your brand can now stay connected with your customers during their trip.

You can also leverage member data to offer personalized eSIM plans based on travel patterns or data usage, making your offers more relevant than ever.

3. Tap into new revenue streams and partnerships

Explore co-branded eSIM partnerships or commission models with an eSIM provider like Airalo. eSIM partnerships unlock new revenue opportunities with minimal investment in infrastructure and development. 

4. Uncover customer behaviour insights

Gain valuable behavioral data on member travel patterns and preferred destinations. This information helps you refine your loyalty strategies and create more personalized marketing campaigns. You can also track which eSIM offers resonate most with your members, allowing you to optimize your marketing for more relevance and impact.

5. Differentiate your loyalty membership offer 

Offer a solution that differentiates your loyalty program from competitors. Elevate different membership tiers and differentiate perks. Keep your customers hooked with new ways to earn miles. 

For example, a travel agency can use an eSIM package as a selling point to get new loyalty members or use it as a way to offer more value to their current ones.

6. Act on your sustainability values 

eSIMs also support your corporate social responsibility goals by eliminating the need for plastic SIM cards and their packaging.

You can even include these analytics in your corporate social responsibility reports. For example, you can quantify how many plastic SIM cards were not produced as a result of using eSIMs and add that to your ESG reporting.

How eSIM rewards benefit your loyalty members

Members want real value — especially when it comes to rewarding and reminding them about the benefits of their loyalty. With eSIMs, they can:

• Enjoy global connectivity and flexibility: eSIMs provide seamless service in hundreds of countries and regions. Members can switch plans or providers digitally, making eSIMs an easy and functional solution for frequent international travelers.
• Experience stress-free travel: Land in a new country already connected and ready to navigate, book a ride, or contact loved ones.
• Keep real savings in their pocket: Avoid exorbitant roaming fees and keep more money for travel experiences. Your members can say goodbye to costly roaming charges. They access competitive local data rates, providing them with a direct financial benefit they will appreciate.
• Access enhanced security: The embedded nature of an eSIM reduces the risk of loss or theft, adding an extra layer of security and peace of mind.
• Access exclusive benefits: Offer tiered rewards, like higher data allowances or multi-country plans, for your top-tier members. This gives them a tech-savvy loyalty experience that aligns with their digital lifestyle.

How Airalo Partners can help you add eSIMs to your loyalty programs

Airalo Partners offers tailored eSIM solutions to help you improve retention and customer satisfaction for your loyalty memberships.

Airalo Partners offers:

• Flexible partner solutions: Integrate eSIMs into your platform with options like our API, SDK, eCommerce plugins, or a co-branded site.
• Global coverage: Access over 900 eSIM packages available for over 200 countries and regions.
• 24/7 customer support: Ensure your customers always have the help they need, anytime, anywhere.
• A trusted brand: Join a global community of over 20 million users who love and trust the Airalo app.
• Dedicated partner support: Work with partnership managers who have experience tailored to your industry and needs and are invested in your growth.

FAQs

How can I add eSIMs to my loyalty program?

There are several ways to integrate eSIMs into your program. Airalo Partners offers a wide range of partnership and integration models to best fit your business and customer journeys. 

👀 Airalo Partners: A practical guide to our partnership solutions

What eSIMs does Airalo offer to loyalty programs?

Airalo offers coverage in over 200 destinations worldwide and over 900 eSIM packages. From data only, to voice and text packages, as well as single-country, regional plans to global packages. There is something for every traveler. 

You can choose the data plans that best suit your members’ travel needs and a partnership model that works for your business goals.

Which industries already use eSIMs in their loyalty programs?

Airlines, financial institutions, and travel agencies are leading the way in integrating eSIMs. For example, some airlines offer eSIM data plans as a loyalty reward, while credit card companies provide exclusive eSIM bundles to cardholders. This trend is growing rapidly as more businesses recognize the value of seamless connectivity.